Eliminating the Metro Service Gap with Virtualized Optical Networks [First Full Draft • 05/30/08] Introduction Service providers have a problem with their metro Ethernet infrastructures today: a sizable gap between existing services, such as Internet access, virtual private networks (VPNs) and disaster recovery applications, and a variety of new, potentially lucrative ones. Examples of these new services include transaction processing, mobile aggregation, datacenter interconnect and storage mirroring. The gap exists because current wave division multiplexing and packet optical transport technologies are unable to deliver low-latency, fractional 10 Gbps services costeffectively—or at all. The fundamental problem is the discontinuity between packetbased Ethernet and the underlying circuit-based topology employed in all wave division multiplexing (WDM) and packet optical transport systems. Putting it another way: point-to-point circuits undermine Ethernet’s hallmark any-to-any connectivity. This white paper—suitable for both a technical and business decision-maker audience— explores this service gap, explains its evolutionary causes and introduces a revolutionary new technology—Packet WDM—that closes the service gap by eliminating the underlying packet-circuit discontinuity. The Service Gap in Metro Ethernet Networks Packet-based networks, particularly those utilizing Ethernet and the Internet protocol (IP), are far more efficient and, therefore, far more cost-effective than circuit-oriented networks. This indisputable fact explains why voice over IP (VoIP), for example, is now displacing the legacy Time Division Multiplexing (TDM) architecture in both enterprise and carrier networks. In early metropolitan deployments, the aggregate bandwidth requirements quickly exceeded the capacity of Ethernet links operating, at the time, at 1 Gbps. As the demand for IP and Ethernet services grew, carriers began to scale their network infrastructures with WDM and Packet Optical Transport System (POTS) solutions. Both WDM and POTS today provide scalability beyond Ethernet’s current maximum rate of 10 Gbps. But they do so in a way that makes it difficult if not impossible to provision flexible-bandwidth, low-latency services. And this inability creates a sizable gap in the continuum of services desirable across the full spectrum of performance. The diagram below shows this service gap, which is at its worst for applications that require fractional 10 Gbps bandwidth and relatively low latency. 1 The gap in the continuum of metropolitan services is caused by limitations inherent in today’s wave division multiplexing and packet optical transport systems. The Evolution of the Service Gap The service gap was inevitable as the LAN and the WAN merged in the MAN. LANs evolved as packet-based networks with Ethernet ultimately obtaining monopoly status. WANs traced their roots to the circuit-based communications of the Public Switched Telephone Network. When these two worlds merged in the metropolitan area, it was only natural to adopt conventional long-distance technologies when deploying Ethernet in the “last mile.” Initially, this meant the use of traditional wave division multiplexing equipment. A next generation of packet optical transport systems soon evolved, based in part on WDM technology. Each of these technologies warrants a closer look to explain how such a sizable service gap could have evolved. Wave Division Multiplexing (WDM) and Dense WDM (DWDM) equipment offer a way to scale IP/Ethernet networks beyond today’s maximum Ethernet link rate of 10 Gbps. With WDM technology, a single pair of fiber optic cabling is able to transport numerous separate packet streams on different wavelengths. 2 DWDM equipment does indeed afford virtually unlimited scalability. But that scalability comes at a price: enormous complexity that increases capital and operational expenditures. DWDM configurations can become quite complex in packet-based networks because the underlying topology remains point-to-point. It s these complexities and inefficiencies that motivated the industry to seek a better solution. Packet Optical Transport Systems (POTS) attempt to unite Ethernet, SONET/SDH and WDM into a more cohesive solution. The idea is to preserve the benefits of SONET/SDH—a deterministic network with sub-50-millisecond recovery, and robust operations, administration and maintenance (OA&M) capabilities—while adding scalability beyond a single SONET/SDH ring’s maximum capacity of 10 Gbps (OC-192). But because the underlying topology with POTS remains point-to-point, the approach remains far from optimal for the any-to-any nature of packet traffic. For example, packet transport based on optical circuits can waste a significant amount of bandwidth because Gigabit Ethernet signals do not map efficiently into 2.5 Gbps wavelengths. The stackedring architecture is also more expensive owing to the number of non-revenue (noncustomer facing) ports that must be deployed to switch traffic end-to-end. To alleviate these problems, some POTS solutions incorporate Layer 2 packet switching modules into their optical circuit platforms. These systems reduce the number of Ethernet ports required and improve optical circuit utilization by allowing any Ethernet packet from any Ethernet port to be switched to any of the pre-provisioned wavelengths serving as optical circuits. While this approach does help by mapping traffic from multiple Ethernet ports into a single circuit, optical bandwidth must still be deployed point-to-point. POTS-based designs also endeavor to enhance flexibility, thereby reducing the complexity, by using a Reconfigurable Optical Add-Drop Multiplexer (ROADM) technology that enables remote control of the underlying wave division multiplexer at the wavelength layer. While in theory this minimizes truck rolls, in practice transponders are not deployed in an idle mode with the anticipation that they will be needed sometime in the future. Instead, they are deployed as needed, so truck rolls continue to be required for optical circuit redesign. Twin Limitations Open the Service Gap Both DWDM and POTS solutions suffer from twin limitations that together create the service gap. The first is their inability to deliver variable increments of bandwidth efficiently and cost-effectively. Their granularity is limited to 2.5 Gbps or 10 Gbps, with both wasting bandwidth in the emerging sweet spot of services between Ethernet’s 1 Gbps and 10 Gbps link rates. These fractional rate services are deemed highly desirable because they enable carriers to provision inexpensive entry-level services, sizing the service to meet the customers’ 3 needs, then up-selling additional bandwidth without the need for a truck roll to the customer premises. But the problem with circuit-based WDM systems is that a full 10 Gbps must be provisioned even when the customer requires only a modest upgrade from an existing 1 Gbps Ethernet service. Networks with 2.5 Gbps circuits suffer from a similar problem that effectively wastes available wavelengths with sub-optimal utilization. In ether case, because the infrastructure to support these fractional services is expensive, carriers may be forced to charge a premium to preserve profitability. The second problem is the increased latency caused by the underlying circuit-based network topology. The lack of any-to-any connectivity in point-to-point topologies requires traffic to take an indirect route end-to-end across the carrier network infrastructure. Each node adds some latency, and the cumulative effect can cause performance problems with some applications. The maximum amount of latency occurs with solutions that require optical-electrical-optical conversions. The circuits in the network can be allocated on an exclusive basis, of course, to minimize latency. The dynamic nature of packet traffic, however, makes any such configuration short-lived. Every change in customer services requires a corresponding change to optimize the configuration. And because making these changes is disruptive and expensive, most carriers choose instead to live with a sub-optimal configuration. Virtualizing the Metro Network with Packet WDM A third generation in the evolution of packet transport technology eliminates the service gap created by the twin limitations in DWDM and POTS designs by integrating Ethernet’s simplicity and efficiency directly into the optical domain. And by thus eliminating the packet-circuit discontinuity, the next-generation Packet WDM solution enables carriers to provision Ethernet services in 1 Mbps increments up to 10 Gbps with deterministically low latency of less than 1/10TH of a millisecond. Packet WDM is the next logical step in the evolution of optical networking based on its ability to combine the any-to-any connectivity of Ethernet with the scalability of wave division multiplexing. Unlike circuit-based WDM systems that rely on pre-provisioned optical circuits, Packet WDM technology employs optical burst transponders capable of switching traffic as packets in bursts at different wavelengths. This underlying technology, known as optical burst switching (OBS), is widely viewed as the best way to eliminate the packet-circuit discontinuity that plagues the traditional circuit-based solutions. The use of such transponders brings statistical multiplexing efficiency to the optical domain, where each transponder shares bandwidth across all nodes, and available capacity is reallocated in real-time. The optical burst transponder’s ability to communicate on any wavelength with every other transponder in the resilient metro ring topology is what gives Packet WDM its virtualized any-to-any Ethernet connectivity. The laser in the transponder is able to tune into and lock onto any wavelength in nanoseconds. Although every node is capable of 4 transmitting and receiving any wavelength, individual nodes are configured to receive on only one wavelength. In effect, this wavelength becomes a destination addresses in the optical domain. Packets destined for a particular node are, therefore, transmitted on that node’s wavelength, enabling traffic to flow (in bursts) from any source directly to any destination with no intermediate processing or latency. In a Packet WDM network, every node transmits on every wavelength and receives on just one, enabling the any-to-any connectivity need to eliminate the service gap. Like SONET/SDH, OBS offers deterministic transport with a sub-50 millisecond recovery. Like Ethernet, OBS enables bandwidth to be allocated dynamically and partitioned by user and/or application. Also like Ethernet, OBS employs a special protocol for synchronizing transmissions network-wide to avoid collisions in the optical domain. This network-wide coordination of all traffic flows enables the entire Packet WDM configuration to function as a distributed virtual Ethernet switch. Significantly, the total cost of ownership is substantially lower with a Packet WDM solution compared to either DWDM or POTS solutions. By enabling all transponders to communicate directly throughout the fiber ring (rather than being dedicated in matched point-to-point pairs), far fewer transponders are needed to deploy a metro-wide Packet WDM configuration. And because transponders represent the majority of equipment costs in any WDM network, optical burst switching normally results in an immediate capital expenditure savings of up to 50%. 5 The operational expenditure with a Packet WDM solution is also dramatically lower owing to its operational simplicity. By consolidating an entire metro optical network into a single distributed virtual Ethernet switch, the configuration is far easier to deploy, operate, troubleshoot and manage than complex, circuit-based WDM solutions. In fact, Packet WDM solutions can entirely eliminate the need for optical engineering, enabling anyone knowledgeable in Ethernet to install, configure and manage the network. Conclusion Until recently, high-bandwidth metropolitan networks could only be built atop a circuitbased transport layer. Packet WDM technology is the breakthrough advance needed for pure-packet metro networks capable of providing the best of both worlds: the simplicity and efficiency of Ethernet packet switching combined with the virtually unlimited scalability of dense wave division multiplexing. By packetizing and virtualizing the optical domain, Packet WDM technology eliminates the packet-circuit discontinuity and resulting service gap inherent in circuit-based solutions. With a Packet WDM solution, carriers can provision a wide range of lowlatency services in 1 Mbps increments up to 10 Gbps—without wasting available capacity. Carriers also get a lower total cost of ownership that, together with the more efficient utilization of optical bandwidth, yields far greater profit potential. To learn more about how your organization can benefit from third-generation Packet Wave Division Multiplexing technology, please visit Matisse Networks on the Web at www.matissenetworks.com or call +1-650-938-5100. ### 6